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Title: The Budget Deficit, The Real Story
Source: [None]
URL Source: http://thedmichaelwallerreport.blog ... budget-deficit-real-story.html
Published: Aug 9, 2010
Author: thedmichaelwallerreport
Post Date: 2010-08-09 13:06:18 by no gnu taxes
Keywords: None
Views: 24688
Comments: 46

The Washington Post babbled again today about Obama inheriting a huge deficit from Bush.

Amazingly enough, a lot of people swallow this nonsense (AKA Horseshit). So once more, a short civics lesson is in order.

Budgets do not come from the White House. They come from Congress, and the party that controlled Congress since January 2007 is the Democratic Party. They controlled the budget process for FY 2008 and FY 2009, as well as FY 2010 and FY 2011. In that first year, they had to contend with George Bush, which caused them to compromise on spending, when Bush somewhat belatedly got tough on spending increases. For FY 2009, though, Nancy Pelosi and Harry Reid bypassed George Bush entirely, passing continuing resolutions to keep government running until Barack Obama could take office. At that time, they passed a massive omnibus spending bill to complete the FY 2009 budgets.

And where was Barack Obama during this time? He was a member of that very Congress that passed all of these massive spending bills, and he signed the omnibus bill as President to complete FY 2009. Let's remember what the deficits looked like during that period:

If the Democrats inherited any deficit, it was the FY 2007 deficit, the last of the Republican budgets. That deficit was the lowest in five years, and the fourth straight decline in deficit spending. After that, Democrats in Congress took control of spending, and that includes Barack Obama, who voted for the budgets. If Obama inherited anything, he inherited it from himself.

In a nutshell, what Obama is saying is I inherited a deficit that I voted for and then I voted to expand that deficit four-fold since January 20th.

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Begin Trace Mode for Comment # 12.

#1. To: no gnu taxes (#0)

If the Democrats inherited any deficit, it was the FY 2007 deficit, the last of the Republican budgets.

The budget has been in deficit since boy george moved into the oval office.

Cut taxes, grow our way out of debt economic theory proved false.

lucysmom  posted on  2010-08-09   13:18:06 ET  Reply   Untrace   Trace   Private Reply  


#2. To: lucysmom (#1)

The budget has been in deficit since President Bush

The deficits started with Clinton's exiting recession.

no gnu taxes  posted on  2010-08-09   13:21:19 ET  Reply   Untrace   Trace   Private Reply  


#6. To: no gnu taxes (#2) (Edited)

The deficits started with Clinton's exiting recession.

Recession started in March 2001. Clinton was out of office. So, according to you and the other Mouth Breathers, Boy Blunder owned it.

That said, the 2001 budget, Clinton's last, was in surplus.

war  posted on  2010-08-09   13:46:36 ET  Reply   Untrace   Trace   Private Reply  


#11. To: war (#6)

The Clinton Manufacturing Recession

Gross Domestic Product has expanded six consecutive quarters and industrial production grew in 2002. But total non-farm payroll employment has declined by 2.1 million jobs since its peak in March 2001, leading critics to pin the decrease on President Bush and to describe the current economic situation as a “jobless recovery.”

But closer examination of the employment data shows that if blame is to be awarded, it should go to ex-President Clinton. The data also reveal the need for the Bush tax cut.

Job losses are concentrated in the economy’s manufacturing private industry sector, which peaked in April 1998 on Clinton’s watch. In the ensuing five years, 2.6 million manufacturing jobs (14 percent) have disappeared.

You can call this the Clinton Manufacturing Recession — and it's the major reason why total non-farm employment has not grown.

The services-producing sector — 82 percent of the economy — has created 353,000 new jobs under President Bush since reaching a trough in December 2001. Job growth is spread across two private-industry sectors: services and the sector that includes finance, insurance, and real estate (FIRE).

The National Bureau of Economic Research, the official arbiter of cyclical turning points, has said the economy reached a peak in March 2001. FIRE employment was 7.6 million in March 2001 and has grown to 7.8 million as of April 2003. Services employment was 41 million in March 2001 and has edged up to 41.4 million as of last month.

Growth in the services sector under President Bush has been greatest in the area of health and education. Gains have also occurred in engineering and management services, a hi-tech component. Government employment, counted in the services-producing sector, has also grown, but the largest gains are in non-federal employment.

Not every services-producing industry sector has grown under President Bush. Declines occurred in retail and wholesale trade, as well as transportation and public utilities. But these drop-offs pale in comparison with the manufacturing job losses that started under Clinton.

Nondurable manufacturing employment peaked at 7.9 million workers in January 1995. Components that peaked under Clinton included: food and kindred products (October 1995); textile mill products (November 1994); printing and publishing (May 1998); and rubber and miscellaneous plastics (February 2000). Many of these jobs were once concentrated in the South.

Durable manufacturing peaked at 11.2 million workers in April 1998. Components that peaked under Clinton included: lumber and wood (February 2000); furniture and fixtures (July 2000); primary metals (January 1998); fabricated metals (July 2000); industrial machinery and equipment (March 1998); electronic and other electrical equipment (November 2000); transportation equipment (October 1998); instruments and related products (March 1998); and miscellaneous manufacturing (April 1998). Some of the largest durables goods employment is in the upper Midwest.

No manufacturing component has peaked under President Bush. Stone, clay, and glass — a durable component — peaked in January 2001, the month Clinton left office. Six other manufacturing components peaked pre-1993.

President Bush inherited an economy on the brink of recession. Employment in the goods-producing sector (manufacturing, construction, mining) and industrial production peaked under Clinton. GDP contracted for three quarters in 2001 but has expanded for six quarters under President Bush. Yet total non-farm employment has not grown due to manufacturing job losses. Far from a “jobless recovery,” the economy is suffering from the Clinton Manufacturing Recession, and is in need of fiscal stimulus.

no gnu taxes  posted on  2010-08-09   15:00:26 ET  Reply   Untrace   Trace   Private Reply  


#12. To: no gnu taxes (#11)

Link with author please?

Never mind...you've posted this so many fucking times I already know that it's an opinion piece from National Review.

war  posted on  2010-08-09   15:03:43 ET  Reply   Untrace   Trace   Private Reply  


Replies to Comment # 12.

#13. To: war (#12)

But these drop-offs pale in comparison with the manufacturing job losses that started under Clinton.

Nondurable manufacturing employment peaked at 7.9 million workers in January 1995. Components that peaked under Clinton included: food and kindred products (October 1995); textile mill products (November 1994); printing and publishing (May 1998); and rubber and miscellaneous plastics (February 2000). Many of these jobs were once concentrated in the South.

Durable manufacturing peaked at 11.2 million workers in April 1998. Components that peaked under Clinton included: lumber and wood (February 2000); furniture and fixtures (July 2000); primary metals (January 1998); fabricated metals (July 2000); industrial machinery and equipment (March 1998); electronic and other electrical equipment (November 2000); transportation equipment (October 1998); instruments and related products (March 1998); and miscellaneous manufacturing (April 1998). Some of the largest durables goods employment is in the upper Midwest.

No manufacturing component has peaked under President Bush. Stone, clay, and glass — a durable component — peaked in January 2001, the month Clinton left office.

Awful lot of facts in there for an opinion piece.

no gnu taxes  posted on  2010-08-09 15:14:49 ET  Reply   Untrace   Trace   Private Reply  


End Trace Mode for Comment # 12.

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